Which of the following is NOT a benefit of a mutual fund? A) They can

QUESTION

Which of the following is NOT a benefit of a mutual fund?

A) They can be traded by investors at will.
B) They are managed by professionals with investment expertise.
C) They distribute risk across a variety of securities.
D) They offer a wide range of investment strategies.
E) They are an economical way to invest.

ANSWER

Answer: A
Explanation: A) Traditional mutual fund shares cannot be traded at any time; they can only be purchased or sold at the end of the trading day. This limits investors’ control over the pricing of mutual fund purchases and sales.